Defining the sector
In Brazil, non-governmental activity is institutionalized through Organizações da Sociedade Civil (OSCs)—non-profit entities that collaborate with the public sector to pursue social outcomes, address exclusion, and expand basic services. OSCs operate under a legal and institutional framework distinct from purely philanthropic models in some other countries; they are formalized partners in public policy delivery rather than external advocates only.1, 2
Legal and regulatory framework
A key milestone was the Marco Regulatório das Organizações da Sociedade Civil, established by Law nº 13.019/2014. This law systematized voluntary partnerships between OSCs and public authorities, replacing older convênio regimes with a more transparent structure that includes Termos de Colaboração, Termos de Fomento, and Acordos de Cooperação for delivering public services and programs.2, 3
These instruments allow OSCs to implement public-interest activities with shared accountability, standard reporting, and co-design elements that tie civil society participation directly to government planning and budgeting.3 This regulatory clarity has contributed to greater predictability and institutional trust between civil society organizations and public administrations.
Scale and economic footprint
Brazil’s Third Sector is among the largest in the world by organizational volume. According to recent mapping data, the country has hundreds of thousands of OSCs active across states and municipalities, collectively involved in health, education, social assistance, environmental conservation, and cultural activities.4, 5 Although precise employment and GDP contributions vary by survey methodology, many hundreds of thousands of jobs and substantial local economic activity are associated with Third Sector operations.
OSCs often operate at the front lines of service delivery in underserved areas, complementing public services where capacity gaps exist and helping maintain social safety nets in contexts of economic stress. They mobilize volunteers, human capital, and private funding alongside public contracts, turning social goals into tangible economic activity.
Partnerships and cross-sector collaboration
Under the MROSC framework, OSCs are legally equipped to partner with public bodies at all levels. These collaborations typically include financial transfers, shared governance structures, and joint performance monitoring.2, 3, 6 These formalized partnerships reduce friction and create structured interfaces between government programs and civil society implementation capacity.